By OGJ editors
HOUSTON, Aug. 13 -- Palomar Gas Transmission LLC, a newly formed joint venture of TransCanada Corp. and Northwest Natural Gas Co. (NNG), propose to build and equally own a natural gas pipeline that would serve Oregon, the Pacific Northwest, and the western US. If approved, the transmission line could begin service in late 2011.
As proposed, the project would include 220 miles of 36-in. pipe extending from northwestern to north-central Oregon, connecting TransCanada's existing Gas Transmission Northwest (GTN) system with NNG's distribution system near Molalla, Ore., 30 miles southeast of Portland.
The project design includes an extension option that would serve the Bradwood Landing LNG terminal proposed by NorthernStar LLC on the Colombia River.
The main section of the project is a 110-mile eastern portion that accounts for $300-350 million of the total project cost estimated at $600-700 million.
NNG's utility operation has agreed to contract for about 100 MMcfd of capacity on the pipeline. The company currently depends on a single interstate pipeline for its supply, two thirds of which comes through the Columbia Gorge.
TransCanada's GTN system will operate the Palomar pipeline, and has yet to request preliminary environmental approval for the project from the Federal Energy Regulatory Commission. Even before that filing is made, Palomar will begin the public engagement process, the company said.